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3. Write your answers in the space provided. Show your work below. Answers Questions What is the change in the money supply when the Fed
3. Write your answers in the space provided. Show your work below. Answers Questions What is the change in the money supply when the Fed purchases $700 worth of bonds and the required reserve ratio is 14 percent assuming banks hold no a. excess reserves? b. What is the money multiplier when the reserve ratio is 12.5 percent? If the reserve ratio is 20 percent, how much money can be created from $100 C. of reserves? Suppose the required reserve ratio is 20%. What is the maximum amount of d. total money supply that can be created from an initial deposit of $200
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